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Hybrid Cars Save on Gas—and Taxes

With the increase in gas prices, hybrid cars are becoming more popular, especially with the added bonus of an income tax credit.

How does the hybrid car tax credit work?

• A credit of up to $3,000 is available, depending on the vehicle's rated fuel economy, the more gas a vehicle saves, the higher the credit.
• The law limits the credits to 60,000 hybrid vehicles from all brands sold by each automaker.
• The IRS has certified hybrid models made by Honda, Ford, Mercury, GMC, Mazda and Nissan for the credit.
• The credit is fully phased out for Toyota vehicles.
• The credit applies to new-vehicle purchases only.
• Beware the credit is limited to the excess of your regular tax over your alternative minimum tax.

For more information, contact Cara Hoffman at 312-980-3274 or your Blackman Kallick representative.

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.